Worcester ratepayers could face higher water, sewer bills

Monday

Apr 1, 2013 at 6:00 AMApr 1, 2013 at 10:21 PM

By Nick Kotsopoulos TELEGRAM & GAZETTE STAFF

Local water users are once again facing the prospect of higher water and sewer bills.

Robert L. Moylan Jr., commissioner of public works and parks, has recommended increases in city water and sewer rates for the fiscal year beginning July 1. For the average single-family customer, the expected increase for water and sewer services combined is roughly $36 for the year.

Water usage in the city has steadily decreased for years, and annual water use by single-family homes in Worcester now averages about 6,800 cubic feet, with 100 cubic feet of water equal to 748 gallons.

“Of course, this proposed increase follows nine consecutive years of similar or larger increases, so the cumulative cost impact on Worcester homeowners is not insignificant,” Mr. Moylan wrote in a report that goes before the City Council Tuesday night. “The current economic conditions only exacerbate the financial effect.”

Mr. Moylan has proposed increasing the water rate by 20 cents (6 percent), to $3.51 for every 748 gallons of water used.

He has also proposed increasing the sewer rate by 42 cents (7.6 percent), to $5.94 for every 748 gallons of water used.

Sewer bills for residential properties are based on 80 percent of metered water usage.

Also, Mr. Moylan also wants to increase the water rate for out-of-town users by 20 cents, to $3.80. That represents an increase of 5.6 percent.

The commissioner said the rate increases are needed to keep pace with the “costly burden” of compliance with unfunded regulatory mandates imposed on water and sewer utilities by the federal and state governments.

“Much of this cost increase is associated with increases in debt service to support capital improvements mandated by state and federal regulators,” Mr. Moylan wrote in his report.

“As was stated in previous rate submissions, ratepayers can expect continuous increases in water and sewer rates as long as the federal Environmental Protection Agency continues to impose their uncontrolled and unfunded mandates on cities and towns,” he added. “This year we again see the effects of the costly burden of compliance with regulatory mandates.”

City Manager Michael V. O’Brien has forwarded the commissioner’s recommendations along to the City Council for its consideration. The item is expected to be referred to the council’s Public Works Committee for review.

Mr. Moylan said costs associated with improvements being made to the Upper Blackstone Water Pollution District sewer treatment plant in Millbury are responsible for nearly half of the sewer rate increase. Declining water use is also a contributing factor.

Because water and sewer utilities have a high percentage of fixed costs, he said a decline in usage results in an increase in rates.

For next fiscal year, water usage is projected to decline 1.3 percent.

As water and sewer rates have escalated over the past 10 to 15 years, Mr. Moylan said Worcester water users have responded by using less water.